Gabriel Products accidentally overstated its ending inventory by $5,000 at the end of Period 1. Is the

Question:

Gabriel Products accidentally overstated its by $5,000 at the end of Period 1. Is the gross margin of Period 1 overstated or understated? Is the gross margin of Period 2 overstated, understated, or unaffected by the Period 1 error? Is the total gross margin for the two periods overstated, understated, or correct? Give the reason for your answers.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...